2. Payment of Outstanding Notes..  President MoVey stated
to the Board that the following represented the outstanding obli-
gations which the University owes: Peabody Fund, $40,000; Notes
due fog Smith Hall, $9,000; McLaughlin Note, $4,500; Mulligan
Mote, w4,750.  The statement was made to-the Board that the
Peabody Note was secured by liberty Bonds.   A motion was made by
Senator Ernst, seconded and adopted, providing that any unexpend-
edt balance of the University's funds at the end of the year be ap-
plied on the outstanding indebtedness other than the Peabody Vote.

     3. Report of the President.   President McVey then made to
the Board the following brief report:

   Gentlemen of the Board of Trustees:

        "In the short time that we have for this meeting I shall
  report briefly on sole of the happenings of the University
  during the past year and indicate some of the points in the
  affairs of the University that ought to be brought before you
  at this time:

        "(a) 1 2Pinancial Situation.    I would call your atten-
   tion to the fact that we are in a better financial situation
   than me have been in a number of years.   During the past
   year we have saved from the University's budget about 025,000
   which will enable us to discharge part of our indebtedness.
   In addition to this we have received approximately $100,100
   from the Bingham Estate as inheritance tax which will be used
   to build a new wing to the Chemistry Building.   We can proba-
   bly also use this to offset any loans that will have to be
   made during the coming fall, thus saving interest.   The archi-
   tects have estimated that it will cost about $200,000 to build
   the kind of Chemistry Building that we ought to build.   Mr.
   W~hipple suggests that about $60,000 can be cut off by not
   building the auditorium portion at the present time.   It is,
   however, necessary to go ahead with the construction of the
   Chemistry Building, because it is the only- hope of our getting
   more room.

        "(b) Memorial Buildiag.   The Executive Committee of the
  Memorial Fund has recommended the erection of a building with
  the money available.   It amounts now to about $135,000.   With
  this amount we can erect an auditorium having a seating capaci-
  +y of not more than 1,800.   Instead of erecting buildings such
  as these are we ought to be erecting buildings that cost half
  a million dollars.   We simply do not have the money to do it,
  however, and at the present time we can merely care for the
  needs at hand.